Core Functionality

Pricing Mechanism

Discount Rate Determination

• Fetched via TermDiscountRateAdapter contract

• Uses clearing rate from most recent valid auction

• Validation rules:

  • For reopening auctions (within 30 minutes), uses previous valid auction rate

  • Oracle can invalidate specific auction rates

  • Requires at least one valid auction result

Price Calculation

The purchase/sale price is calculated using:

• The face value of the RepoToken, adjusted by the redemptionValue,

• discounted using Actual/360 day count convention relative to the RepoToken's redemptionTimestamp; and

• the discount rate fetched from the most recent Term Auction, retrieved via the TermDiscountRateAdapter,adjusted by a discountRateMarkup

Base Formula:

numerator = redemptionValue * RATE_PRECISION * 360_DAYS
denominator = RATE_PRECISION * 360_DAYS + ((rate - discountRateMarkup) * timeToMaturity)
pricePerToken = numerator / denominator

Safety Features

• Oracle role for manual intervention in case of auction rate manipulation

• Haircut mechanism to adjust valuation for bad debt

• Rate validity checks with timestamp verification of auction results

Listing Operations

RepoTokens must meet these criteria for listing:

• Not blacklisted (repoTokenBlacklist[token] == false)

• Active deployment in TermController (isTermDeployed == true)

• Not matured (redemptionTimestamp > current_timestamp)

• Amount exceeds minimum listing threshold

Purchase Methods

Two purchase options available:

1. purchase(uint256 desiredAmount, address repoToken)

   • Buy specific quantity of RepoTokens

2. swapExactPurchaseForRepo(uint256 purchaseTokenAmount, address repoToken)

   • Spend specific amount of purchase tokens

Safety Features

• Reentrancy protection on all state-modifying functions

• Pausable functionality for emergency stops

• Role-based access control for admin functions

• Blacklist capability for RepoTokens

• Minimum listing amounts based on token type